September Market Seminar Par II
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19-Oct-2014 -
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Transcript of September Market Seminar Par II
2. ‘I am going to time the Market and buy at
the peak inventory level and when no one else
buys…’Source: MLS
Source: MLS0
20
40
60
80
100
120
140
160
180
1/7/2007 4/1/2007 6/24/2007 9/23/2007 12/16/2007
Gross # of Guests 2007
Gross # ofGuests 2007
Weekly Guests Thru the Weichert Princeton Open Houses, 2007
Source: MLS
Inventory Levels, Princeton, New Jersey, 2007
0
50
100
150
200
250
1/8/07 3/5/07 4/30/07 6/24/07 8/20/07 10/16/07 12/11/07
3. ‘I am going to wait until the price comes down further and then make an
offer…’Source: MLS
Source: trend mls
Relationship of Price Reductions to ‘Pending Sales’
0
10
20
30
40
50
60
70
Princeton Pendings
Princeton Price Reductions
Town by Town Analysis 8/18/09Towns Active
ListingsPending in Last 30 Days
Absorption Rate in Months
New Listings in 30 Days
Net Gain (Loss) to Market
Listings Reduced in 30 Days
% of Invent. Reduced
Expired Listings
W/drawn Listings
Closed Listings
South
Brunswick
All Styles
208 24 8 43 19 35 16% 27 6 4
South Brunswick
Condo/ T.Houses
70 9 7 21 12 19 14 6 3 1
South Brunswick
55+
31 6 5 2 (4) 4 12 4 0 0
South Brunswick
Single Family
109 9 12 20 11 21 19 17 3 0
Monroe:
All Styles487 39 12 92 53 105 21% 41 7 9
Monroe:
55+312 29 10 53 24 68 21% 22 6 1
Monroe:
Single Family
175 10 21 39 29 37 21% 19 1 0
Source: trend mls
Relationship of Price Reductions to ‘Pending Sales’
0
10
20
30
40
50
60
70
Princeton Pendings
Princeton Price Reductions
Source: trend mls
Relationship of Price Reductions to ‘Pending Sales’
0
20
40
60
80
100
120
West Windsor Pendings
West Windsor Reductions
Source: trend mls
Relationship of Price Reductions to ‘Pending Sales’
0
10
20
30
40
50
60
70
80
90
100
Lawrence Pendings
Lawrence Reductions
Seeing the Opportunity.Seeing the Opportunity.
Seeing the Opportunity.Seeing the Opportunity.
Q. If this were 2005, where would you place the Price and Rate dots?
Prices Rates
High
Mid-Range
Low
A. In 2005, the V would look somewhat like this one, where prices were on the high end of the scale and rates were in the lower range.
Seizing the Opportunity.Seizing the Opportunity.
In recent history, there has never been an opportunity like this, with low prices and low rates. In real estate, this circular area at the bottom of the V is called the “Buying Zone” – it’s an unbelievable time to buy.
Prices Rates
High
Mid-Range
Low
Jeff Smith,
Gold Services Manager/ Loan Officer
Financial Benefits and Financial Benefits and Process of Home-Process of Home-
Ownership.Ownership.
‘I don’t want to buy a house and then watch it drop in value!’
Purchase Price $329,000 Loan Amount $317400
Down Payment $11,515 Monthly P&I $1802
Appreciation/Depreciation Home Value1st Year -3% $319,1302nd Year 0% $319,1303rd Year 1% $322,3214th Year 3% $331,9905th Year 5% $348,5905 Year Appreciation/Depreciation $19,500
Tax Benefit Vs Paying Rent @
$1600/mo1st Year $5,000 $19,2002nd Year $5,000 $19,2003rd Year $5,000 $19,2004th Year $5,000 $19,2005th Year $5,000 $19,2005 Year Total $25,000 $96,000
Total Gain $44,200Create Equity
v Pay Rent
+ The Amortization Schedule on a Loan
Yearly Schedule of Balances and PaymentsYear
Beginning Balance
Payment Principal InterestCumulative
PrincipalCumulative Interest
Ending Balance
2010 $315,646.96 $21,625.92 $4,374.96 $17,250.96 $6,128.00 $24,508.72$311,272.0
0
2011 $311,272.00 $21,625.92 $4,621.30 $17,004.62 $10,749.30 $41,513.34$306,650.7
0
2012 $306,650.70 $21,625.92 $4,881.98 $16,743.94 $15,631.28 $58,257.28$301,768.7
2
2013 $301,768.72 $21,625.92 $5,157.36 $16,468.56 $20,788.64 $74,725.84$296,611.3
6
2014 $296,611.36 $21,625.92 $5,448.28 $16,177.64 $26,236.92 $90,903.48$291,163.0
8
= Total 5 Year Gain: $59,922
Incentive From the Government
First-time homebuyers can receive a
tax credit up to $8000!
Tax Credit OverviewAmount Ten percent of the cost of home, not to exceed
$8,000
Property Any single family residence that will be used as a principal residence
Refundable
Reduces income tax liability for the year of purchase
Income Limit
Adjusted gross income of $75,000 single or $150,000 joint tax returns
First-Time Must not have owned a principal residence in 3 years prior to purchase
Distribute NAR Tax Credit Overview handout
Tax Credit FAQs
• Can individuals with incomes higher than the income limits still benefit from the tax credit?
• How does a tax credit work?
• How do I apply for the credit?
• Is there a way to get the credit before I file my tax return?
Distribute NAR Frequently Asked Question handout
How much house can I really afford?
• The first step is to meet with me!
Establish Establish YourYour Buying Buying PowerPower
Factors to consider Factors to consider when buying and when buying and
selling…selling…
Source: MLS
Inventory(supply and Inventory(supply and demand)demand)
Interest RatesInterest Rates
Interest Rates Remain Interest Rates Remain LowLowAverage Annual Rate (30-year fixed rate mortgage)
5%
7%
9%
11%
13%
15%
17%
19%
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
Year
Percent
Source: Freddie Mac
Joshua D. Wilton, Manager
Strategies for Strategies for SellingSelling
Understand the Market You’re Selling Out Of
Princeton Boro & Twp
5-6 Months Market Absorption Rate indicates a normal market.
Active Pending Absorption Rate
$0 - $700,000 48 11 4 months
$700,000 - $999,000
35 1 35 months
$1M - $1.5M 28 4 7 months
$1.5M + 59 3 20 months
The Impact of Pricing on the Salability of Your Home..…
‘Great speech but does it really work?
We know the best way to evaluate pricing
Does this really work?
We know the best way to evaluate pricing
Does this really work?
22. . The Effect of The Effect of StagingStaging on the on the Value of a Value of a YourYour
HomeHome..
The process of preparing homes for sale regardless of
Price, Location, or Condition
To achieve the maximum sales price in the minimum marketing time.
The GOAL is to appeal to the broadest range of BUYERS.
The Way You Live In Your Home…
… And The Way We Market And Sell A House Are Two Different
Things.
“The Investment in Home Staging
is Always Less than Your First Price Reduction!”
Buyers Only Know What They See …
… Not The Way It Is Going To Be.
Based on a StagedHomes.com survey of over 400 homes across Canada & the Continental US prepared for sale by an
Accredited Staging Professional (ASP™) from June 2007 through November 2007.
The average increase in sales price of an ASP Staged vs. non-Staged home is
6.9%.That is an additional
$31,050 on a $450,000 sale.
The average marketing
time of an ASP Staged vs. non-Staged home is 80%
less.
3.3.The Effect of ‘The Effect of ‘Pre-Pre-Inspection’Inspection’ on the Sale of on the Sale of
YourYour Home. Home.
What is
‘Pre-Inspection?’
Home Inspection
WHAT DOES PRE-INSPECTION INCLUDE? The standard home inspector's report will review the condition of the home's heating system, central air
conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the
foundation, basement, and visible structure.
PRE-LISTING Home Inspection
DOESN’T THE BUYER DO THE HOME INSPECTION?
All Negotiations, including real estate, are all about negotiation and control.
Who is in control?
Right Price
Right Staging
All Repairs are done in advance.
Offer a Home Warranty to the buyer..
PRE-LISTING Home Inspection
Data on where most sales fall apart: attorney review, home inspection.
Fall Thru Percentage 2007: 26%Fall Thru Percentage 2008: 10.2%.
Home Improvements
I am moving out of the house, I do not want spend too much money to move.
Or
I just spent $$ on a new kitchen, I want $$$$$$ back on that investment when I move.
Reality of today’s market is that you will see the return on your investment not in an inflated sales price but in retaining the highest percentage of your list price and staying on the market the fewest # of days.
Please consult with your Realtor & staging professional as to which improvements you should finish to make your home the most salable.
Weichert Family of Companies
What will a real estate company
do for me?
Making Your Purchase as Making Your Purchase as Smooth as PossibleSmooth as Possible
Buying a home involves the careful coordination of many people.
Choosing a real estate team you can count on will make the process smoother
and easier.
• Time is money.
The Weichert The Weichert DifferenceDifference
• Stress kills.
• Time is life.
Educate You.
Negotiate on your behalf.
Offer advice on due diligence.
Manage all aspects of the transaction
process.
What Will a Weichert Agent Do for Me?
We’re Here to HelpWe’re Here to Help
The Entire Process is reviewed by Legal Council.
Become a Fan!
www.facbook.com/weichertprinceton
www.slideshare.net/jdwiltonwww.slideshare.net/jdwilton
www.twitter.com/joshuawiltonwww.twitter.com/joshuawilton
Presentation available at all 3 sites, download file through Monday.
Resource and website list:
Realtor.org
http://www.facebook.com/pages/
NAR-Research/73888294183#
Remodeling.com
Resource and Website Resource and Website ListList
http://www.realtor.org/research/research/housinginx
Remodeling.com
www.Otteau.com
www.Pre-listing-inspection.com
Resource and Website Resource and Website List:List:
www.Housemaster.com
www.Stagingshoppingcenter.com
Resource and website Resource and website list:list:
www.Stagedhomes.com
www.realestatestagingassociation.com
www.foreclosurepoint.com
www.realtytrac.com
Good Luck with your Good Luck with your Move!Move!